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TMI Blog2016 (9) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... d in facts by reducing the deduction u/s 80lC amounting to Rs. 10,04,37,872/- by Assessing Officer by invoking the provisions of section 80IC(7) r. w .s. 801A( 10) of the I.T. Act as according to the AO it appeared that owing to the close connection between the exempted units and the taxable units as also the concern related to the assessee firm, the course of business between them was so arranged that the business transacted between them produce to the exempted units of the assessee firm more than the ordinary profits which might be reasonably be expected to arise and no sustainable documentary evidence was furnished in this regard or in support of the expenses debited in manufacturing, trading and in profit and loss account was furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of deduction from Rs. 21,36,05,429/- to Rs. 11,31,67,557/- and thus made a disallowance of Rs. 10,04,37,872/- to the total income of the assessee vide his order dated 28.3.2013 passed u/s. 143(3) of the I.T. Act, 1961. 3. Aggrieved with the aforesaid assessment order, assessee preferred an appeal before the Ld. CIT(A), who vide his impugned order dated 10.2.2014 has deleted the reduction claim u/s. 80IC by Rs. 10,04,37,872/- and allowed the appeal of the assessee. 4. Now the Revenue is aggrieved against the impugned order and filed the present appeal before the Tribunal. 5. At the time of hearing Ld. DR relied upon the order of the AO and reiterated the contentions raised by the Revenue in the grounds and requested that Appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or units of the assessee's firms. Taking all these factors into account the AO has stated that no evidence in respect of manufacturing, trading and P&L a/c have been submitted during the assessment proceedings. However, the appellant has produced all the books of accounts and vouchers before the AO during the assessment proceedings. In fact, no show cause query was issued by the AO on this account during the assessment proceedings. The AO has not considered the fact that the units in exempted zones are mainly engaged in manufacturing on job work basis where there is either negligible or no input cost of raw material involved. If the sales were made using their own raw material, there would be substantial difference in the GP rate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's firms. Taking all these factors into account the AO has stated that no evidence in respect of manufacturing, trading and P&L a/c have been submitted during the assessment proceedings. However, the assessee has produced all the books of accounts and vouchers before the AO during the assessment proceedings. In fact, no show cause query was issued by the AO on this account during the assessment proceedings. The AO has not considered the fact that the units in exempted zones are mainly engaged in manufacturing on job work basis where there is either negligible or no input cost of raw material involved. It was noted that if the sales were made using their own raw material, there would be substantial difference in the GP rate insofar as, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is arbitrary." 7.2 We further note that ITAT, Delhi 'F' Bench in assessee's own case for the assessment year 2005-06 in ITA No. 554/Del/2009 vide order dated 17.9.2009 has upheld the order of the Ld. CIT(A) by citing the exactly the same case law of the ITAT i.e. DCIT vs. Delhi Press Samachar Patra 103 TTJ (Del) 45 (Supra). 8. In the background of the aforesaid discussions and respectfully following the precedents of the Coordinate Bench in assessee's own case relevant for the assessment year 2005-06 and 2009-10, we are of the considered view that the Ld. CIT(A) has passed a well reasoned order which does not need any interference on our part, hence, we uphold the same. 9. In the result, the appeal of the Revenue is dismissed. Order pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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